1. Introduction
“Q&A regarding the qualified invoice system under the input consumption tax (CT) credit system” is introduced on the website of the National Tax Agency (the NTA’s Q&A). In this News, we will mention the descriptions required in foreign currency invoices.
2. Descriptions in foreign currency invoices
When sellers issue qualified invoices (QIs) that show prices in a foreign currency, the required descriptions are basically the same as common QIs that show prices in JPY. In detail, it is allowed to show the prices of products in a foreign currency, but “each CT amount” (10% for standard tax rate and 8% for reduced tax rate) must be shown in JPY.
3. Method of calculation of each CT amount in JPY
When sellers calculate each CT amount in JPY, the following should be considered.
・Which is applied, the price including CT or excluding CT?
・The timing of conversion into JPY
According to the NTA’s Q&A, the following calculations are introduced.
① Convert the price excluding CT (shown in a foreign currency) into JPY, and calculate the CT amount.
② Convert the price including CT (shown in a foreign currency) into JPY, and calculate the CT amount.
③ Calculate the CT amount by using the price excluding CT (shown in a foreign currency) and convert it into JPY.
④ Calculate the CT amount by using the price including CT (shown in a foreign currency) and convert it into JPY.
4. Conclusion
In this News, we mentioned the summary of descriptions in foreign currency invoices.
Please note that this News only introduces general outlines and does not include professional advice. So please make sure not to make any decisions without taking professional advice individually. If you have any questions, please feel free to contact us.
(Reference / in Japanese)
National Tax Agency
“Q&A Regarding the Qualified Invoice System under the Input Consumption Tax Credit System”
Query on the phone+81-3-6821-9455